US gas prices have fallen below $4 for the first time since March, with the average cost for a regular gallon now at $3.999, according to the motor club AAA. This drop comes after President Donald Trump signed an agreement with Iran, which calls for Tehran to dilute its stockpile of highly enriched uranium and waives U.S.-backed sanctions on the country.
Gas prices have been fluctuating across the country, with California averaging $5.64 per gallon and South Carolina averaging $3.58 per gallon. The recent agreement between the US and Iran has led to a 15% decline in the price of US crude this month.
Impact on the Economy
The drop in gas prices is expected to take weeks or months to have a full impact, as it will take time for oil to flow through the Strait of Hormuz again. Additionally, refineries typically pay for crude oil a month or more in advance, so even after oil prices drop, they won’t immediately be processing cheaper products.
Fighting over the Strait of Hormuz disrupted not only supplies of crude and refined fuel but also the supply chains for fertilizer, food, and other goods. Businesses expect higher costs to linger, which means their customers might need to prepare for that too.
Original reporting: WPBF (Treasure Coast / Hearst) — read the source article.
